An Exploratory Study on Variables Impacting Investments in India with Reference to Theories of Investments (2010-2020)

Abstract

Theories of Investments deciphers and ruminates the mechanism and accelerator of investments in the economy and a firm. To study the theories of investments is an integral part of finance and economic ecosystem due to augmenting vitality of investments. All the growth and development activity depend on the monetary infusion in the system which can be pooled through large scale investments. The desideratum to study theories of investments to articulate the existing variables affecting investment patterns in the economy (India:2010-2020) alongside to explore the uncharted variables existing in the ecosystem has become variably imperative. The branch of macroeconomics is diverse and vast to incorporate add on variables to existing theories to develop a new dynamic and advanced model for a fundamental concept like investments. Monetary policy by the central bank is targeted at inflation but inflation is also a pivotal variable of investments and monetary policy do affect the investment patterns in the country, as it is a determinant factor for the raging and dropping interest rates, open market operations, money (cash or digital) flow in the economy. Hence a regression analysis on the variables discovered at macro level will ruminate the dynamics of investments in the millennial age. Keywords: Theories of Investments, Inflation, Foreign Direct Investment, Foreign Institutional Investors, Gross Domestic Product, Gross Domestic Savings, Gross Fixed Capital Formation and Regression Analysis.